Question 4 - Yield Capitalization Method - 20 Points Question: Perform a 5 year discounted cash flow for the following property and provide the present value. Show all calculations for each year. Use Excel to create a spreadsheet, and make sure it is properly formatted. Subject: You are valuing a 400 unit apartment complex in Denton. It is comprised as follows: Unit Type Quantity Monthly Rate 1bed/1bath 100 $600 2bed/2bath 200 $800 3bed/3bath 100 $1,000 The rents are scheduled to remain flat over the next 5 years. Over the last few years, the complex has averaged 92% occupancy, and averaged a 46% expense ratio of Effective Gross (Actual) Income. The market averages similar occupancy and expense ratios. The complex receives a consistent amount of 2% of EGR for miscellaneous income. Investors require a 8.00% discount rate on their investment for this type of property over the holding period. The investors plan to sell the property in year 5, at a value based on an 6.00% Cap Rate of projected NOI for that year. Question 4 - Yield Capitalization Method - 20 Points Question: Perform a 5 year discounted cash flow for the following property and provide the present value. Show all calculations for each year. Use Excel to create a spreadsheet, and make sure it is properly formatted. Subject: You are valuing a 400 unit apartment complex in Denton. It is comprised as follows: Unit Type Quantity Monthly Rate 1bed/1bath 100 $600 2bed/2bath 200 $800 3bed/3bath 100 $1,000 The rents are scheduled to remain flat over the next 5 years. Over the last few years, the complex has averaged 92% occupancy, and averaged a 46% expense ratio of Effective Gross (Actual) Income. The market averages similar occupancy and expense ratios. The complex receives a consistent amount of 2% of EGR for miscellaneous income. Investors require a 8.00% discount rate on their investment for this type of property over the holding period. The investors plan to sell the property in year 5, at a value based on an 6.00% Cap Rate of projected NOI for that year